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Profile of Tencent, China’s most valuable company at ~$900B, with a powerful ecosystem including WeChat and local and overseas startup investments worth ~$259B. ( Wall Street Journal)

AdamMarch 29, 2023

0 5 3 minutes read

After selling to Apple, Tencent has become one of the world’s most important technology companies. But Tencent’s real secret lies in its ability to integrate deeply into Chinese citizens’ lives. It has also developed a powerful ecosystem of products and services, including WeChat, the world’s largest messaging app. Most importantly, Tencent’s startups are valued at nearly $259 billion, according to Crunchbase data, and it has a strong network of overseas investors, including Alibaba. In other words, Tencent is a rare example of a company successfully combining its massive scale with an entrepreneurial culture.

Profile of Tencent?

Tencent is one of China’s largest internet companies. It has surpassed Facebook in market value and now ranks as the largest internet company in the world, surpassing Amazon. Tencent has become so popular in the last few years that its social media app, WeChat, is now used by over 1.3 billion people around the globe, making it one of the world’s most popular apps. Now, what does Tencent have to do with you? According to Bloomberg, Tencent could soon be worth as much as $400 billion, making it the second-largest company in the world after Apple. But you’re missing out if you need to become more familiar with Tencent. The following is an overview of Tencent, its history, and what you can expect when you use it daily.

How does Tencent impact the world?

The most well-known Chinese app maker is Tencent, the largest social networking app in the world. Tencent owns WeChat and is one of the three largest game publishers in the world. They also own a lot of smaller gaming companies and have some big entertainment projects too. In 2015, the Chinese government gave Tencent 100 Billion Yuan (US$15.2B) to invest in a new fund called New Vision Capital. Since then, they’ve used the money to invest in over 1,000 startups in China and abroad. In addition to investing in startups, they’ve also begun investing in more traditional industries such as consumer electronics, cloud computing, and healthcare. As of 2016, Tencent has invested over $12.9 billion in the U.S. alone. In 2018, Tencent ranked 7th among global Internet companies by market cap, and as of 2019, Tencent is #5. They are also the most valued tech company in the world. Tencent is also the biggest IPO in history.

How does Tencent make money?

They sell games. That’s right, Tencent makes money selling games. Tencent (also known as QQ in China) runs an online gaming service called QQ. They also run Tencent Music (another online music service), Tencent Video (which is another online video service), and Weixin (an online chatting and instant messaging service). Over the past several years, Tencent has invested heavily in building its entertainment content and services portfolio. All of those services are free and provide value to their customers. Tencent was ranked the 2nd largest social media network globally, with over 645 million active monthly users at the end of 2014.

Conclusion

China’s Tencent Holdings has become one of the world’s most valuable companies after its stock price surged to a record high earlier this month. The company reported a net profit of $4.27 billion for the first quarter of 2017, compared with a loss of $3.07 billion a year ago. Revenue rose 26 percent from a year earlier to $12.6 billion. Net income reached $5.74 billion, up 32 percent. The company cited rising demand for online services and a stable outlook for online gaming in its results. For more details on Tencent, read our profile of the company.

FAQS

1. What is the business model of Tencent?

Tencent makes money by selling advertising space on its apps. They also have a variety of other business models, including online games, cloud services, and e-commerce.